Most interesting post Nova Star. So V2O5 98% flake is US$25.35 per lb. So at an exchange rate of 0.72 this is around A$35 per lb. So how does this translate to KRC. Well KRC say they have 4712 million tons at 0.3% V2O5, 2% Ti, 14,7% Fe. So how much is the V2O5 worth in the ground at the above figures. So lets do the calculation 4712 * 1,000,000, * 0.3/100 *2240 * 35 = $1,108,262,400,000 (i.e 1.1 trillion or, to get perspective, about 8 times the market capitilization of one of Australia's largest mining cos, BHP). Assume only 90% of the V2O5 is recovered along with only 90% of the Ti and Fe, then the final tally is about $1.15 trillion. Reduce the price of V2O5 by half and the value is around $600 billion.
Of course value is the ground not profit. From this value mining, stripping, waste managment, benefication, acid leach, marketing, royalties, capex, restoration and rehabilitation, interest, administration and taxes will have to be deducted and hopefully these numbers will form part of a feasibility study. But let's cut to the quick, Session in his most informative post on the Gibellini vanadium deposit notes that the Operating cost is US$4,77 per lb and the all sustaining costs is US$6.28 per lb. So what happens if we apply the all sustaning cost to Speewah. So the calcalation is 4712*1000000*0.3/100*2240*6.28/.72=$276 billion. Leaving a surplus of $832 billion (excluding credits from the titanium and iron). There will be quite some tax bill. It is noted in passing that the grade of Gibellini is slightly less than that of Speewah - make of this as you will. One can play around with the figures but the fact is that Speewah is a truly massive Vanadium deposit and, IF is is developed, it will be a truly massive mine. From these figures I conclude there potential upside in the share price of KRC, over time, but the quantity and extent of the final return will only be known when the deposit is mined out. Feasibility studies will provide a guide. With these sorts of numbers, the fluorite and gold would appear just a distraction.
This is definately not investment advice. What is not published fact is speculation which may be wildly wrong and misleading. I have not verified any of the figures used in these calculations and cannot vouch for their veracity. Please do your own calculations and your own research. My darling wife tells me I am often wrong.
Expand
(20min delay)